European Court of Auditors in a report warns the €650B Recovery and Resilience Facility remains vulnerable to fraud, calling for stronger controls and clearer rules to safeguard EU funds

The audit finds that the RRF’s performance-based funding model, which releases payments when Member States meet milestones and targets rather than reimbursing actual project costs, limits the EU’s ability to detect and prevent fraud affecting the €650-billion post-pandemic recovery instrument. ECA recommends clearer guidance on fraud reporting, stronger national anti-fraud frameworks and improved coordination between Member States, the European Commission, the European Anti-Fraud Office (OLAF) and the European Public…